A VC : Venture Capital and Technology

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Global Venture Capital Distribution

A VC : Venture Capital and Technology

Richard Florida published some stats on the distribution of global venture capital investment last week. Outside of the U.S.,

Venture Capital Returns

A VC : Venture Capital and Technology

This post is for everyone who thinks venture capital is an easy business. I'd like to dispel that notion. You lose more than you win.

Experiment and Scandal

A VC : Venture Capital and Technology

Some of this has happened because of the explosion of venture capital, both in the US and also around the world. We are living in a time of great experiments. They are not happening in the lab. They are happening in the real world. And they are being financed by real people. But by their nature experiments often fail. We talk it up.

What Is Going To Happen In 2016

A VC : Venture Capital and Technology

Markdown mania will hit the venture capital sector as VC firms follow Fidelity’s lead and start aggressively taking down the valuations in their portfolios. It’s easier to predict the medium to long term future. As amazing as these things sound, they are coming and soon. But what will happen this year that we are now in?

Fund Level Vs Deal By Deal Carry

A VC : Venture Capital and Technology

In a venture fund, the general partners will make something like twenty or twenty five investments. There are outliers for sure. A few venture funds will make less investments than that. The thing I want to talk about is how losses (and gains) are treated in a venture fund. That’s $50mm of invested capital.

The European Startup Market

A VC : Venture Capital and Technology

Second, we have developed a number of strong relationships with European venture capital firms. This post by a leading venture fund investor in the US talking about the new European VC funds is right on the mark. At USV, we’ve been investing in European startups since 2008. So what’s happening here?

Europe 100

Small Ball

A VC : Venture Capital and Technology

As the venture capital business and entrepreneurs are increasingly bulking up in terms of fund sizes (VCs) and round sizes (entrepreneurs), I am decidedly a fan of small ball. It is hard to return capital to your investors in the VC business. Kickstarter, DuckDuckGo, and Zynga are other good examples of small ball in action.

The Pro-Rata Opportunity

A VC : Venture Capital and Technology

like this slide from his post: “Capturing pro-rata” is sooooo important in early stage venture. You make 20 investments in a fund.

A Focus On The Company Not The Investment

A VC : Venture Capital and Technology

” - @fredwilson @Launch #launch2015. — Red Clay (@redclayco) March 4, 2015. I do not mean that your investment isn’t important and I do not mean that making money isn’t the focus of a venture capital firm and a venture capital investor. Both are absolutely true. VC & Technology

You Are Not Your Work

A VC : Venture Capital and Technology

entrepreneurship Venture Capital and Technology My friend Gary said this to me the other day in an email. He wasn't talking about me but he could have beeen. Last night I went to bed thinking about my work, dreamt about my work, and woke up thinking about my work. To some extent it's been that way for me since college.

The Startup Curve

A VC : Venture Capital and Technology

Venture Capital and TechnologyBut more services exhibit this "startup curve" than any other growth pattern. But many do.

How Well Do You Take A Punch?

A VC : Venture Capital and Technology

Venture Capital and TechnologyI was talking to a friend who has been displaced because of Sandy. They are struggling to get back to their daily routine and it is hard living out of a suitcase without access to the things they rely on from day to day. I was talking to the CEO of a company whose business was negatively impacted by Sandy.

The Billion Dollar Valuation Club

A VC : Venture Capital and Technology

  Venture Capital and Technology Aileen Lee has a really good post up on TechCrunch , in which she analyzes the number of companies that have been started since 2003 that have gone on to be worth $1bn or more. Unless, of course, you raise money from VCs. In which case, you are getting into the game and will be impacted by it.

Mocked And Misunderstood

A VC : Venture Capital and Technology

Venture Capital and Technology Web/TechFor some reason, that correlates highly with the biggest breakout successes.

Product Idea: Reverse Engineering VC Investment Strategies

A VC : Venture Capital and Technology

Venture capital firms don’t do a great job on their websites of explaining what they invest in and what they do not invest in. And I think entrepreneurs who are going out to raise capital would find it incredibly valuable. The other day I found myself on a VC website. This is not a simple thing to do, but it can be done.

The Twitter "Patent Hack"

A VC : Venture Capital and Technology

Many years ago now, my prior venture capital firm, Flatiron Partners, invested in a company called Thinking Media. Venture Capital and Technology Web/TechYesterday Twitter announced that they plan to amend the assignments agreements that they sign with their employees. You can read the entire set of provisions on GitHub.

Entrepreneurs Have Control When Things Work, VCs Have Control When They Don't

A VC : Venture Capital and Technology

Venture Capital and TechnologyGrove Potter , the Business Editor for the Buffalo News, interviewed me for something like an hour.

In Defense Of Free

A VC : Venture Capital and Technology

mobile Venture Capital and Technology Web/TechI have written so much about free here at AVC that it should be called AVFree.

Loss Ratios In Early Stage VC

A VC : Venture Capital and Technology

Or you can calculate loss ratios by "dollars" meaning how much of the capital invested in the fund went into total losses. That fund will be the best venture fund I have ever worked on. Venture Capital and Technology And made a fair bit too. Our first fund, USV 2004, has an "names" loss ratio of about 40%.

Video Of The Week: Talking VC With Mark Suster

A VC : Venture Capital and Technology

It is an hour long broad ranging conversation about the venture capital and startup business. VC & Technology

You Can Do Too Much Due Diligence

A VC : Venture Capital and Technology

It's Monday, time for another lesson I've learned in the venture capital business. MBA Mondays Venture Capital and Technology Today I will tell a story that I love telling. It has some of my favorite people in it. It provided a number of useful services for a blog's RSS feed. What we heard was surprising.

What Do You Look For?

A VC : Venture Capital and Technology

Venture Capital and TechnologyI'm asked this question all the time. Is it team? Is it the idea? Is it product? Is it market?

Video 101

What Has Changed

A VC : Venture Capital and Technology

there is a large pool of money in the venture capital asset class that is opportunistic, momentum driven, and thesis agnostic. this pool of capital was "all in" on consumer web/social web in the 2009-2011 time frame. That is a tiny fraction of the venture capital market. What does that mean for USV?

Investing In Startups In Europe

A VC : Venture Capital and Technology

Venture Capital and Technology One of the big european tech conferences starts today. It's called DLD and my partner Albert is giving a talk there tomorrow. The last big european tech conference was LeWeb and I gave a talk there. You might wonder why we fly across the pond to attend and talk at these events.

The Summer Doldrums

A VC : Venture Capital and Technology

This is true of venture capital, but it is also true of other investment sectors as well. know many companies don’t like to raise capital in the summer months. So if you need to raise capital in the summer or just want to, you can make it work. Partner meetings are harder to get scheduled.

Valuation vs Ownership

A VC : Venture Capital and Technology

Venture Capital and Technology I am talking at the PreMoney conference today (via Skype) and I woke up thinking about the challenges facing the VC industry. hope to talk a bit about this at the conference. Some investors are ownership focused. They want to own 20% of the business but care less about the valuation. The $2mm buys us 20%.

How Much Money To Raise

A VC : Venture Capital and Technology

Venture Capital and TechnologyImage via Wikipedia. That's not a good thing. If you can keep it to 10%, that is great.

My Talk At LeWeb Yesterday

A VC : Venture Capital and Technology

mobile Venture Capital and Technology Web/Tech I'm back in the states this morning and up early (jet lag).

The Darwinian Evolution of Startup Hubs

A VC : Venture Capital and Technology

In NYC, that was Doubleclick which was founded in 1996, the same year as my first venture capital firm, Flatiron Partners, which was founded on two premises, that the Internet would be big and that NYC would be an important locus of Internet innovation. Venture Capital and TechnologyThis continues on and on and on.

Video Of The Week: The Tech Tonic Discussion

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Politics Venture Capital and Technology

Video 51

Rethinking Mobile First

A VC : Venture Capital and Technology

mobile Venture Capital and Technology Web/TechI wrote the Mobile First Web Second blog post a few years ago. In that post, I talked about apps that were designed to be used on mobile primarily with the web as a companion. There have been a number of startups that have taken that approach and done well with it. Typing is easier.

The Power Of Diversification

A VC : Venture Capital and Technology

Venture Capital and TechnologyI have written about this topic before but it's important and I want to say it again.

When Things Don't Work Out

A VC : Venture Capital and Technology

Venture Capital and TechnologyI have said many times that early stage VC is a lot like baseball, if you get a hit one out of every three times, you are headed to the hall of fame. And if I look back over my career, and also over the track records of the firms and funds I have helped manage, that is pretty much the hit rate I have seen.

Return and Ridicule

A VC : Venture Capital and Technology

So many folks in the venture capital business are sheep that just want to follow the herd. Venture Capital and Technology I am going down to Princeton today to talk to Ed Zschau's class on entrepreneurship today. Ed asked me what I wanted to talk about. His logic was that you can't make money by being wrong.

Outsider vs Disruptor

A VC : Venture Capital and Technology

Note that I’m not absolving my industry, venture capital, from bad behavior. I’m merely pointing out that price drivers are more strongly correlated with outsiders. This quote makes a shocking claim I didn’t think the Transition audience would be interested in: financial capital’s job is done. Think Alphabet.

Mary Meeker's 2012 Internet Trends

A VC : Venture Capital and Technology

mobile Venture Capital and Technology Web/TechMary published this presentation this past week.

Doing Business On A Handshake

A VC : Venture Capital and Technology

Venture Capital and TechnologyI often wish we could do business on a handshake. I've been thinking about it more and more these days. We negotiate a sophisticated set of documents when we invest in a company and for the most part, those documents never come into play. But if I were an angel, I might do things differently.

Stock 87

Starting and Finishing

A VC : Venture Capital and Technology

entrepreneurship management Venture Capital and Technology AVC regular Donna White posted this to her Tumblr yesterday: I'm a crotchety old guy. worry about all these new companies. I’m glad that they’re easier to start, but the problem is, they’re just as hard to finish as they have always been. And many don't.

Video Of The Week: Paul Graham in 2005

A VC : Venture Capital and Technology

entrepreneurship Venture Capital and Technology

Mobile Is Where The Growth Is

A VC : Venture Capital and Technology

mobile Venture Capital and Technology Web/TechIf you look at any of the top web properties on comScore, Quantcast, Alexa or any other third party reporting service you will see that they all have been fairly flat over the first half of the year. You might think that all these big web services are flatlining. Web is flattish. Yahoo!